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Table of Contents
Introduction 1
Research Objectives 2
Population and Sample 3 - 4
Methodology 5
Findings 6 - 20
Product Characteristics 21
Market analysis 22 - 25
Sales Analysis 26
Customer Analysis 27
Promotion and Advertising 28
Pricing Strategy 29
Competition 30
Conclusion and Recommendations 31
Appendices 32 - 37
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Introduction
The business idea is conceptualized from the merging of the lounging/lyming experience
together with that of fine dining. This unique restaurant, proposed to be named, “The Lounge”,
takes the form of a partnership and is to be located in New Kingston. This location will further
serve to facilitate and support the vibe that we are hoping to convey, based off the quality and
aura of the other entertainment, as well as business places in the area. Being able to provide the
working class with the fine dining concept, as well as relaxation at an affordable cost is our main
goal. However, the possibility to host business meetings exists, while still being the “chill spot”
after work; hence the slogan Chill. Eat. Relax.
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Research Objectives
The research is conducted to answer the following objectives. These objectives will provide vital
information that will help the proposed business satisfy its potential customers and will also help
to determine the business growth and lucrativeness.
1. To determine if there is a viable market for our proposal.
2. To determine the price potential customers are willing to pay.
3.
To identify the target market.
4. How profitable will this project be?
5. To identify the major players in the market.
6. To determine the kind of service guest prefer.
7. To determine the kind of cuisine potential customers are willing to buy.
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Population and Sample
This restaurant concept is very unique and innovative, offering more than just food but also a
place where persons can come and relax. We are planning to use questionnaires as our main
means of gathering data on our potential customers and consumers. The population size that we
are planning to target is approximately 1000; we are planning on using a sample size of 70 (7%).
Our main demographic focus is on the working upper middle class persons who are earning a
disposable income of $80000 and more. Our psychographic emphasis will be placed on those
persons who are food lovers and are healthy eaters.
The method used to decide the sample population was stratified-random; this is a method of
sampling that involves the division of a population into smaller groups known as strata. In
stratified random sampling, the strata are formed based on members' shared attributes or
characteristics. A random sample from each stratum is taken in a number proportional to the
stratum's size when compared to the population. These subsets of the strata are then pooled to
form a random sample.
The strata were formed based on several demographic and psychographic factors. Demographic
factors include age, income level, location and marital status. Psychographic factors include life
style, interest and hobbies. Seven hundred persons were chosen based on these criteria, after
which seventy were randomly chosen. The main advantage with stratified sampling is how it
captures key population characteristics in the sample. Similar to a weighted average, this method
of sampling produces characteristics in the sample that are proportional to the overall population.
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Stratified sampling works well for populations with a variety of attributes, but is otherwise
ineffective, as subgroups cannot be formed.
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Methodology
In doing our research to open a high end restaurant named The Lounge and located in New
Kingston, we have decided that, in order to know exactly what the clientele is looking for in a
restaurant, we decided to issue out questionnaires to get their feedback. The questionnaires were
administered in a survey form where the clients answered both open-ended and close-ended
questions. The questionnaires were administered in the New Kingston area, Papine, Spanish
Town, University of Technology, Jamaica and Half Way Tree. This will help us to know and
determine what our restaurant will be like.
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Findings
1. How often do you eat in at a restaurant?
The figure above shows that people mostly go out to eat once a month, twice a week and once a
week.
Once a week
Twice a week
Once a month
Other
0
0
0
0
20
19
25
8
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2. Where do you presently go to eat out?
In the pie chart above, the results show that the Jamaican people both go to fast food
restaurants and fine dining restaurant presently when they go out to eat and hardly go to local
restaurants (cook shop) and casual eateries.
28
2
28
3
Fast Food Restaurants
Local JamaicanRestaurants (cook shop)
Fine Dining Restaurants
Casual Eateries (Cuddiesand TGIF)
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3. How open-minded/conservative are you about food
The graph above shows that Jamaicans are more conservative than open minded about their food.
They rather to stick to what they know rather than trying new cuisines they know nothing about.
0
5
10
15
20
25
30
Open minded Conservative
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4. What time do you prefer to visit a restaurant?
In this figure above, guests mostly prefer to visit a restaurant between the time of lunch and
dinner as it is a better fitting to enjoy the ambiance.
0
5
10
15
20
25
30
35
40
45
Breakfast (9a.m. – 11 a.m.) Lunch (11:30 a.m. – 4 p.m.) Dinner (7p.m. – 12p.m.)
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5. How much would you pay for a full course meal?
The figure above shows that guests are willing to pay from $2500 - $3500 for a full course meal
as it is a high end restaurant.
0
5
10
15
20
25
30
$2500 - $3000 $3000 - $3500 $4000 - $5500 Other (Please specify)
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6. What type of dining room would you prefer?
This image shows that guests prefer a more relaxed environment from that of a private room,
casual chic and formal dining at a restaurant.
0
5
10
15
20
25
30
35
40
Private room Relaxed environment Casual chic Formal dining
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7. When going to a restaurant, which criteria are important for you? (Tick 1-5, 5 being most
important)
Restaurant Concept
Dining Environment
The figure above shows that the dining environment is very important when eating at a
restaurant.
48
1924
13 1
2
3
4
5
0
3 3
30
33
1
2
3
4
5
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Food Quality
The pie chart shows that food quality is the most important to customers when going at a
restaurant.
Service
As seen in the figure above, service is the most important at a restaurant.
10 1
27
66
1
2
3
4
5
0
18
1839
1
2
3
4
5
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Price
The figure shows that price is very important to customers when paying at a restaurant.
Convenience
The figure above shows that convenience is somewhat important and somewhat not that
important.
1
6
12
24
24
1
2
3
4
18
15
13
131
2
34
5
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8. How would you prefer your food to be served?
The figure above indicates how potential customers prefer to have their food served to them in a
restaurant setting.
0
2
4
6
8
10
12
14
16
18
20
Buffet Style Plated Family Style A’ la Carte All of the
above
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9. What type of cuisine would you prefer? (Choose all if applicable)
The figure above shows that customers would prefer more Chinese, American, Jamaican and
Italian food at the restaurant.
27
8
13
46
18
31
108 American
Mexican
Indian
Jamaican
Italian
Chinese
French
I don’t mind
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10. How many items would you order for the meal?
The figure above shows that customers would mostly order two items (salad/soup and main dish)
than a full course meal.
14
34
27
3Only main dish
Two items (salad/soup
and main dish)
Full course
Other items (including
side dish)
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11. What is your age range?
The figure shows that, mostly young adults answered the questionnaires.
0
10
20
30
21-25 26-30 31-3536-40
41-4546-50
over
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12. What is your education level? (Specify if you have more than one)
In this figure above, it shows that the clientele/customers‟ education level is mostly a degree
(bachelors, associates).
01020304050Diploma
Degree
(Bachelors,
Associates)
MastersPh.D
Other (Please
specify)
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13. What is your income level?
The bar graph shows that our clientele/customers earn a maximum of $80,000 - $300,000 for
their income.
0
5
10
15
20
25
$30,000 -
$35,000$25,000 –
$30,000
$80,000 –
95,000 110,000 -$300,000 $350,000+
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Product Characteristics
The product that will be offered is a restaurant and lounge. It will cater to the working class as
well as students and will offer a place to relax and unwind after a stressful day. It will be a one of
a kind experience for customers because while taking part in the fine-dining experience they will
also get to experience a relaxed atmosphere that also entertains with pool tables, music and
comfortable seating. The product is unique in the services that it offers as this two-fold restaurant
dining experience is one of a kind. The combination of a fine dining restaurant and lounge will
result in a new and exciting experience.
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Market Analysis
Market Size
The questionnaire conducted provided valuable information that was used to determine the
potential market size of the proposed business. The business we are venturing is an open market
and as a result there are many businesses of similar interest in and around the location that our
restaurant (The Lounge) will be situated. However because of our unique service, style and
facilities it was determined that our proposed business „The Lounge‟ will attract customers.
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Market Share
The Lounge will execute different strategies in order to gain a remarkable share in the market.
According to our questionnaire and information gathered about the area, we expect within 3
years of operation an extensive share of the market. Also we wish to gain at least 20% of the
market share based on the size of our operation and as time progresses our business will expand
to increase from the 20% market share by offering the best quality services to our customers.
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Opportunities for Potential Growth
Having profitable core business based on high quality products and services gives you the license
to go further in solving customers‟ problems. The proposed business helps to uncover other
customer needs that involve using services more effectively. The Lounge will be providing first
class services to our customers therefore we will be having repeat guests and even new
customers due to effective advertising. The hosting of business meeting will further attract new
customers and set a standard for our business. The renting of the lounge and bar area of The
Lounge for special events will then attract customers to our business and so our services will be
utilized in a positive way to enhance and improve our business. A happy guest is a returning
guest. Within The Lounge, staff will be rewarded for their job well done and so they will be
motivated and when staffs are motivated services will portray effectively to our potential
customers however, business will grow successfully.
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Threats That Might Pose a Risk
The set up or the layout of the different areas of The Lounge may not suit potential
customers.
Government may want to present a significant risk to the values that this business will try
to uphold.
Operational risk in terms of issues that might affect day-to-day viability of working in the
new market and its profitability.
Due to the newness of the business a profit may not be obtained for the first few months
of opening.
Well trained potential professionals may not want to work in this business because of
limited resources and employee benefits.
Customers may want to go overboard with events and may cause damage to the
reputation of the business.
Enough capital may not be in place to get required resources for this type of business
Resources may not be available or maybe limited to set up business
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Sales Analysis
In conducting the feasibility study for the proposed restaurant we were able to identify the
business potential customers and competitors by conducting a survey in the form of
questionnaires. The information gathered from the questionnaires was also used to determine if
the business would be profitable. The feasibility study also determines the market share we were
hoping to capture over the first two years of the business operation. For the first year the business
hopes to capture 20% of the target market in and around its location and within two years‟ time
we hope to capture approximately 35% of the target market.
For the first year, the business plan is to invest an average of 4 million dollars to establish
the business. We have identified our potential customers for the first year to be approximately
nine thousand and sixty five (965). The potential yearly sales are expected to be 3,860,000 after
calculating the potential customers and the average amount to be spent for the first year.
Sales are expected to be constant. The restaurant expects to continue to attract customers
because of its unique dining experience and facilities offer to the guest. Sales will also increase
as a result of promotional strategies and special group packages offered to groups.
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Customer Analysis
The Lounge customers will be consumers, persons who will come to eat and stay for the
relaxation and vice versa. Our potential customers will be targeted based on various
demographic information; Age, our core target customers should be over 18 years of age but
there is no maximum limit. Marital status, we will be focusing on both married and unmarried
individuals, reason being; evidence show that single persons have a higher tendency of going out
to lounge and bars than married persons. Evidence also shows that married persons are the most
frequent, health conscious and loyal restaurant patrons. Income level, we will be targeting
persons whose disposable income is a minimum of $80,000, persons who fall within this income
level are more likely able to comfortably afford and appreciate the food and services that we will
be providing.
Psychographic profile of our potential customers, the customers that we are targeting are
persons who love food, healthy eaters, occasional eaters and persons who just want to relax.
Food lovers are those persons who love food that are prepared at the highest quality even if they
have to pay a little extract, these are the persons that we will be placing emphasis on.
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Promotion and Advertising
When opening a new business especially a high end restaurant, in order to make our restaurant
known and in the public, we have decided that the most effective way to inform customers about
our restaurant is by:
• Radio
• Internet/Social Media- Facebook and Twitter
• Press – Newspaper ads
• Fliers
• Television
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Pricing Strategy
The business will arrange its prices so that it will attract potential customers and encourage
customers to continue to use our facilities and services. For the first four months the restaurant
will offer special prices as a promotional strategy. There will be a 15% discount for persons who
order full course meals. There will be discount packages for groups, for example, graduation
dinner. Also the restaurant menu will have a different range of prices. On special holidays such
as Christmas Day, Valentine‟s Day, Mother‟s Day and Father‟s Day, there will be menu specials
to attract customers. However prices will be increased on these holidays.
The restaurant will also take advantage of the Kingston Restaurant Week by
participating. During this week prices will be adjusted to feature special discount fixed prices on
appetizers, main course and dessert.
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Competition
According to our findings, Gloria‟s, TGIF, Cuddy‟z, Acropolis, Tracks and Records, Tera Nova,
Aunt Mae‟s, Spanish Court, Island Grill, Pegasus, Kentucky Fried Chicken and Burger King are
some of The Lounge‟s competitors. The current market is a combination of both small and large
sellers but the main competitors are TGIF, Acropolis and Tracks and Record simply because
they have a similar concept to what The Lounge has; a place where eating and lyming is under
one roof.
When it comes on the competitive advantages of our competitors, we safely conclude that
the strengths when compared to our concept would be that the products and services they offer
are already known to the market, hence the reason for them holding such a large part of it. The
prices they offer for their product is one factor that gravitates their target market to them.
However, their weakness, when compared to our concept is the ambiance. Our concept sets us a
cut above the rest simply because the ambiance that we will portray is one of elegance and
exclusivity and this along with our impeccable service will be our competitive edge.
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Conclusion and Recommendation
The findings of this research informed us about our target market, about what they look forward
to from any dining experience and what they expect of service and food quality. From this, the
business seeks to ensure the main goal of establishing a fine dining restaurant with a relaxed
setting at an affordable cost is met and maintained. It is recommended that we ensure the food
quality, the dining environment and service are all in keeping with the slogan, “Chill. Eat.
Relax”.
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Appendices
The Questionnaire
We are young entrepreneurs from the University of Technology, Jamaica, planning on opening a
restaurant. We are conducting a survey on how receptive the public is about fine dining. The
information given by you will be of high anonymity and greatly appreciated.
1. How often do you eat in at a restaurant?
Once a week
Twice a week
Once a month
Other (Please specify)
2. Where do you presently go to eat out?
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3. How open-minded/conservative are you about food?
4. What time do you prefer to visit a restaurant?
Breakfast (9a.m. – 11 a.m.)
Lunch (11:30 a.m. – 4 p.m.)
Dinner (7p.m. – 12p.m.)
5. How much would you pay for a full course meal?
$2500 - $3000
$3000 - $3500
$4000 - $5500
Other (Please specify)
6. What type of dining room would you prefer?
Private room
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Relaxed environment
Casual chic
Formal dining
7. When going to a restaurant, which criteria are important for you? (Tick 1-5, 5 being most
important)
1 2 3 4 5
Restaurant Concept
Dining Environment
Food Quality
Service
Price
Convenience
Other (Please specify)
8. How would you prefer your food to be served?
Buffet Style
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Plated
Family Style
A‟ la Carte
All of the above
9. What type of cuisine would you prefer? (Choose all if applicable)
American
Mexican
Indian
Jamaican
Italian
Chinese
French
I don‟t mind
10. How many items would you order for the meal?
Only main dish
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Two items (salad/soup and main dish)
Full course
Other items (including side dish)
11. What is your age range?
21 – 25 26 – 30 31 – 35 36 – 40
41 – 45 46 – 50 over
12. What is your education level? (Specify if you have more than one)
Diploma
Degree (Bachelors, Associates)
Masters
Ph. D
Doctorate
Other (Please specify)
13. What is your income level?
$30,000 - $35,000 $25,000 – $30,000 $80,000 – 95,000 $110,000 - $300,000
$350,000+
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Product Design
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The Lounge
Eat Chill Relax